How do weekly labor draws work for rehab projects?

We quote your full project price upfront. Instead of paying 30-50% as a deposit, you pay weekly as labor progresses. Each payment is credited toward your project total. Draws start at $4k/week for smaller projects and scale with project size. Materials are separate: we provide detailed lists and you purchase directly, so you control the spend.

Is SLH a project manager or contractor?

We're the licensed general contractor. Our crews do the work: demo, framing, plumbing, electrical, finishes, everything. We're not a middleman coordinating other contractors.

Why do investors purchase materials separately?

Transparency. Traditional contractors mark up materials or bundle them so you can't see what you're paying. We provide detailed material lists with quantities and timing. You buy directly from suppliers at cost. No hidden markup, full visibility.

What payment methods do you accept for rehab projects?

The $150 scope fee can be paid by credit card. All other payments (weekly labor draws, final balances) are wire transfer, check, or cash only. No credit cards for project payments.

How do I qualify for Portfolio Partner pricing?

You qualify with either 3 or more concurrent projects OR a commitment to 5+ projects per year. This gives you 10% off weekly labor draw rates plus priority scheduling and included pre-acquisition estimates.

Do you handle permits for rehab projects?

Yes, as an add-on service. We manage the entire permit process including applications, coordinating inspections, and maintaining documentation. Permit fees are passed through at cost.

How do I know if my rehab budget fits the deal?

Run the 70% rule: Max Purchase = (ARV x 70%) - Rehab Cost. If the resulting purchase price is realistic for your market, the deal works. If not, either reduce the rehab scope or pass on the deal.

What finish level should I target for my ARV?

Under $200K: builder grade. $200K-$300K: flip grade (Shaker cabinets, granite/quartz, LVP). $300K-$500K: upper flip grade. Over $500K: approaching custom. Match the finishes to what the market expects.

What percentage of ARV should my rehab be?

Typically 13-23% of ARV depending on property condition and price point. If your rehab exceeds 25% of ARV, re-examine your scope for over-improvement or re-evaluate the deal.

What is included in the $150 scope visit?

Full walkthrough, scope of work with finish levels matched to your ARV, line-item costs, timeline, and weekly draw schedule. The scope is designed to fit your deal math.

How do weekly draws help me stay within my rehab budget?

You track actual spend against budgeted spend every single week. By Week 3 of a 10-week project, you know if you are trending over or under budget with time to adjust.

ARV and Rehab Budget: Why They Must Work Together

Your ARV tells you what you can spend on rehab. Not the other way around. I see investors fall in love with a renovation plan and then try to force the numbers to work. That's backwards. The numbers come first. The renovation plan serves the numbers.

The 70% Rule (And Why It Still Works)

The classic formula: Maximum Purchase Price = (ARV x 70%) - Rehab Cost

On a $280K ARV property with a $50K rehab:

Max purchase: ($280K x 0.70) - $50K = $146K

This leaves $84K for your profit, closing costs, holding costs, and agent commissions. Tight but workable.

Now watch what happens when the rehab creeps to $65K:

Max purchase: ($280K x 0.70) - $65K = $131K

You need to buy $15K cheaper to make the same margin. In a competitive market, that might mean losing the deal.

And if the rehab hits $80K:

Max purchase: ($280K x 0.70) - $80K = $116K

The deal might not exist anymore at that purchase price.

How ARV Should Drive Your Rehab Plan

Before you plan a single renovation, run the deal math:

Determine ARV from comps
Apply the 70% rule (or your preferred formula)
Back into your maximum rehab budget
Design the renovation to fit that budget

If your max rehab budget is $50K, don't plan a $65K renovation and hope you can "save" on materials. Plan a $45K renovation with $5K contingency. Stay inside the math.

Finish Level by ARV Range

The ARV determines what finish level the market demands:

Under $200K ARV: Builder-grade finishes. LVP flooring. Laminate countertops. Budget cabinets. Clean and updated but not fancy.

$200K-$300K ARV: Flip-grade finishes. Shaker cabinets. Granite or quartz countertops. LVP or engineered hardwood. Subway tile backsplash.

$300K-$500K ARV: Upper flip-grade. Soft-close cabinets. Quartz countertops. Hardwood flooring in main areas. Tile in bathrooms. More trim detail.

Over $500K ARV: Approaching custom. Higher-end materials, more design elements, professional staging likely needed.

Over-improving for the ARV range burns money. Under-improving leaves money on the table. Match the rehab to the market.

The Rehab Budget Breakdown by ARV

| ARV | Typical Rehab Budget | Rehab as % of ARV | |---|---|---| | $150K | $20K-$30K | 13-20% | | $200K | $30K-$45K | 15-22% | | $250K | $35K-$55K | 14-22% | | $300K | $45K-$70K | 15-23% |

If your rehab is creeping above 25% of ARV, check your scope. You might be over-improving or the deal math might not work.

How Weekly Draws Protect Your Deal Math

Weekly draws give you real-time budget tracking. If your $50K rehab is at $25K after Week 4 of a 10-week project, you know you're trending over budget with 60% of the work still ahead.

That early warning lets you:

Adjust the remaining scope to stay on budget
Evaluate whether the deal still works at the higher rehab cost
Make informed decisions instead of discovering the overrun at project end

At Seller's Little Helpers, the scope visit produces a rehab budget that's grounded in your deal math from day one. We spec materials and finishes to match your ARV range, not to maximize our contract value.

Book a $150 scope visit at sellerslittlehelpers.com - we'll build a rehab plan that fits your deal math, not the other way around. Call (708) 536-6700 or email info@sellerslittlehelpers.com.

ARV and Rehab Budget: Why These Two Numbers Must Work Together